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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $75.58, moving +0.57% from the previous trading session. This change lagged the S&P 500's 1.39% gain on the day. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 1.65%.
Coming into today, shares of the coffee chain had gained 7.51% in the past month. In that same time, the Retail-Wholesale sector gained 22.43%, while the S&P 500 gained 25.31%.
Investors will be hoping for strength from SBUX as it approaches its next earnings release, which is expected to be April 28, 2020. The company is expected to report EPS of $0.31, down 48.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, down 6.2% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.73 per share and revenue of $23.82 billion. These totals would mark changes of -38.87% and -10.15%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SBUX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 35.4% lower. SBUX is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, SBUX is holding a Forward P/E ratio of 43.54. For comparison, its industry has an average Forward P/E of 29.92, which means SBUX is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 3.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 3.08 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Starbucks (SBUX) Gains But Lags Market: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $75.58, moving +0.57% from the previous trading session. This change lagged the S&P 500's 1.39% gain on the day. At the same time, the Dow added 1.11%, and the tech-heavy Nasdaq gained 1.65%.
Coming into today, shares of the coffee chain had gained 7.51% in the past month. In that same time, the Retail-Wholesale sector gained 22.43%, while the S&P 500 gained 25.31%.
Investors will be hoping for strength from SBUX as it approaches its next earnings release, which is expected to be April 28, 2020. The company is expected to report EPS of $0.31, down 48.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $5.91 billion, down 6.2% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.73 per share and revenue of $23.82 billion. These totals would mark changes of -38.87% and -10.15%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SBUX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 35.4% lower. SBUX is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, SBUX is holding a Forward P/E ratio of 43.54. For comparison, its industry has an average Forward P/E of 29.92, which means SBUX is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 3.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 3.08 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.